REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:July 8, 2025
Subject:Public Hearing and Election for Annexation Proceedings for Annexation No. 25 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 33725 & 25475 (Tuscany Valley & Tuscany Crest) Recommendation
1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE
QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25);
2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25); and
3. Introduce by title only and waive further reading an ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.
Annexation No. 25 Into CFD No. 2015-2 (Tuscany Valley & Tuscany Crest)
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Background
On May 27, 2025, the City Council adopted Resolution No. 2025-25, declaring its intention to annex territory to Community Facilities District No. 2015-2 (Maintenance Services) and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 25. A public hearing was set for July 8, 2025. Following such a public hearing, if there is no majority protest against the annexation and the levy of the special tax, the City Clerk will conduct an election for the landowners and declare the results of that election.
As required by the Resolution of Intention, an annexation map was recorded on June 3, 2025, at 12:19 p.m. in Book 96, Page 31, Document No. 2025-0167527 of Maps of Assessment and Community Facilities Districts with the Riverside County Recorder.
Discussion
KB Home Cal Management Services, LLC (the "Owner"). The Resolution of Intention was adopted by the City Council in response to a request by the Owners for the City to assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with maintaining public improvements. The improvements proposed to be maintained include items such as streetlights, streets, drainage, parks, trails, and graffiti abatement. The Applicants have agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings according to the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The project area proposed for Annexation No. 25, encompassing Tentative Tract Maps 33725 and 25475 (Tuscany Valley and Tuscany Crest), was previously annexed into Community Facilities District No. 2015-2 (Maintenance Services) as Annexation No. 12. However, modifications to the development plan by the Owner have resulted in changes to the public improvements and associated maintenance obligations. These revisions require a new annexation—designated as Annexation No. 25—to align the special tax structure with the updated service responsibilities. Annexation No. 25 will include 204 residential units in Tax Zone 28 and 131 units in Tax Zone 29. The proposed maximum special tax rates are $821 per unit per year for Special Tax A and $221 per unit for Special Tax B in Tax Zone 28, and $604 per unit per year for Special Tax A and $157 per unit for Special Tax B in Tax Zone 29. These maximum tax rates will escalate annually by the greater of two percent (2%) or the percentage increase in the Consumer Price Index (CPI) for the Riverside-San Bernardino-Ontario area. Upon successful completion of the special tax election and recordation of the Notice of Special Tax Lien for Annexation No. 25, the City will record a Notice of Cessation for Annexation No. 12, formally removing the associated tax lien and ensuring the updated special tax structure is the only one in effect for the subject parcels.
To annex property to CFD No. 2015-2 under the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance, which are summarized below.
Annexation No. 25 Into CFD No. 2015-2 (Tuscany Valley & Tuscany Crest)
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•Resolution declaring City's intent to annex territory to Community Facilities District No. 2015-2, including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted May 27, 2025. •Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. •Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
•Amend the Ordinance and order the levy and collection of special taxes in the District.
With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for July 22, 2025.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to the special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, before buildout of the project, exceed the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zone.
Once developed, the Special Tax A for Tax Zone 28 will generate $167,441, and Tax Zone 29 will generate $79,109 for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution Calling an Election
Exhibit A - Rate and Method of Apportionment
Exhibit B - Ballot
Attachment 3 - Resolution Declaring Election Results
Exhibit A - Certificate of Election Results
Attachment 4 - Certificate of Registrar of Voters
Attachment 5 - Ordinance
Administrative Services